What is the Pagdi System in India?

The ‘Pagdi’ system of housing is one of the most prevalent and long-established practices of Indian society. A practice that gained popularity under British rule, India witnessed the Pagdi system thrive in those times. 

Pagdi is a system that has been in use in major metropolises like Mumbai, Delhi, and Kolkata for a very long time, and today, there are estimated to be more than 7.5 lakh Pagdi houses in Mumbai. 

Pagdi system was legalized in Section 56 of the Rent Control Act, 1999 when it said that any person acting on behalf of the tenant can claim or receive any sum or consideration as a condition of relinquishing, transferring or assigning his tenancy of a property.

The pagdi model is a traditional tenancy model observed in India. In the same way as other rental arrangements, it also involves a tenant and a landlord, but it also involves the tenant as a co-owner of the property, and affords him or her both subletting and selling rights.

The tenant in Pagdi is also a co-owner of the property and pays a lower rent as compared to market “asks” rates. Moreover, the tenant enjoys additional rights, such as the right to sell or sub-letting the property.

Also Read

1. What is Pagdi? 
2. What is the Pagdi system in India? 
3. All you need to know about the Pagdi system
4. All You Need To Know About Pagdi System In India 

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